Note 5 - Acquisition of A Subsidiary

9 Months Ended

Feb. 28, 2015

Notes

Note 5 - Acquisition of A Subsidiary

NOTE 5 – ACQUISITION OF A SUBSIDIARY

On January 22, 2014, the Company acquired 56% equity interest in Xin Chang. Consideration of $245,655 was paid upon signing of the Acquisition Agreement; while another $489,900 to be paid to Xin Chang as an operating fund in batches based on Xin Chang’s financial needs as determined by the Company. 

The results of Xin Chang for the nine months ended February 28, 2015 and 2014 are as follows:

	Nine months ended February 28, 2015	Nine months ended February 28, 2014 (post acquisition)
Revenue	$1,290,312	$216,474
Other income	5,133	-
Cost of services	(1,137,258)	(233,916)
Personnel cost	(109,367)	(23,811)
Depreciation expense	(18,251)	-
Amortization expense	(16,343)	-
Administrative and other expenses	(120,814)	(20,200)
Net income for the period	(106,588)	(61,453)